New York is one of thirteen states that has no fault auto insurance. This type of coverage is intended to reduce the number of expensive court cases that result from car accidents, thus potentially lowering yearly premiums.
There are, however, certain requirements for folks who live in these states and are thus required to carry this type of policy. New Yorkers, take note of the following important requirements involved in processing a no fault claim:
1. File in a Timely Manner
In 2002, the laws changed regarding the time frame in which you may submit expenses incurred as the result of an accident that has taken place in New York State. You MUST now follow these guidelines:
- Submit accident claim within 30 days
- Submit medical bills within 45 days
- Submit a lost-wage claim within 90 days
BE DILIGENT: These requirements are strictly enforced. You could lose out on the coverage you have paid for if you do not follow these deadlines.
2. Forms
Be sure to file the proper forms. You are required to use FORM NF2 – "No Fault Application” with the insurance company of the vehicle you were in.3. Pedestrian Claim
If you were a pedestrian, you need to submit TWO of these Form NF's: one to your insurance company and one to the insurance company of the car that hit you.4. Vehicle Registration
The vehicle involved in the accident is required to be registered in New York State, and the accompanying insurance policy must be sold and issued in New York, as well.5. Who is Covered?
This policy is required to cover accidents in which the injured person was hit by another vehicle, but of course, you are required to fill out all of the necessary paperwork in a timely manner. This victim may be the vehicle driver, vehicle passenger, bicyclist, or pedestrian.6. Motorcycles
This no fault insurance does NOT cover motorcycle accidents. The vehicle must be a taxi, truck, bus, or car.7. Uninsured Driver? Out of State Vehicle?
Let's say that the injured party was hit by a vehicle that is from out of state or by a vehicle that is uninsured. As long as someone in the injured party's New York State household has at least one car that is covered through an insurance premium purchased in NY, the injured party will still be covered. (Phew! Got that?)8. Lost Wages
There are a couple of extra steps that must be completed if you are filing for lost wages. You’ll have to involve your employer on this one.
Separate from your own filing, you employer will need to submit on your behalf proof of your normal wages, any disability involved, and written documentation as to your actual loss of income that resulted because of the accident.
Be forewarned: You will not be able to attain 100% of your wages. You will be compensated at 80% of your normal income, and there is a $2,000 cap per month. The good news is that this will stay in effect for a maximum of three years.
It's important to note that it is your responsibility to make sure that your employer has filed this paperwork. Be a little bold, and ask for your employer to send you a copy of what was sent to the insurance company. After you receive this, be sure to follow up with the insurance company to make sure that they received this. Quiz: How many days do you have to do this? If you need to, look back up at the beginning of this article. I won't tell anyone you cheated. Ha. But, really, this timetable is truly important. Take it seriously.
9. Out of Pocket Expense
Hold on tight to those receipts. Save them. Scan them if you can, and make copies if you can’t scan. Keep track of every incidental expense related to the accident, and then send the receipts in batches. The fewer the batches, the higher your sanity level. It can quickly become a
paperwork nightmare.
10. Worst-Case Scenario
You do not know who the insurance company is. It is not the perfect set-up, but your last resort is to contact NY State Motor Vehicle Accident Indemnification Corporation (
MVAIC). This is state-run, full of red tape, and you may need to do some deep breathing to get through this process. But, they are there to help; they are the last resort for when there is
no insurance at all.
11. Be Organized
Okay, so this is not a requirement, but you will thank me for this nudge. Get out those manila folders and set up your own little system of organization. Label one "Receipts." Label another "Medical Reports." Another? "Accident Report" or "Car Repair Estimates" or … You get the picture. Getting this all done, start to finish, could seemingly turn into a part-time job. It can get a bit overwhelming, especially if there is a serious injury. So make it easier on yourself and stay a bit organized. You will need easy access to certain documents when you are on the phone with the insurance folks. This will help to make it easier to find them. And yes, you might need to send the same darned thing in twice, so always have a couple of extra copies of everything!
By keeping all of this in mind, the entire process should not be too nerve-rattling. Good luck!
